Record First Quarter Revenue
Net sales of $1.0 billion, a record first quarter for the company, up 24% year-over-year.
First Solar
· FSLR
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- +23.16%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call conveyed strong operational and financial performance in Q1—record revenue, significant volume growth, expanded margins, robust adjusted EBITDA, higher net income, healthy cash position, successful CURE launch, and a sizable backlog. However, material near-term risks remain: tariff and policy uncertainty (Section 232/122/301 and proposed FEOP), reduced utilization of international factories, underutilization cost exposure, and execution/regulatory risks in India and for new technologies (perovskite). On balance, the positives around domestic manufacturing momentum, technology rollout (CURE), margin expansion, and a resilient balance sheet outweigh the risks, though continued outcomes from trade and policy decisions will be important to sustain momentum.
Company Guidance
First Solar reaffirmed its full-year 2026 guidance and gave Q2 guidance of volumes sold between 3.4–4.0 GW and adjusted EBITDA of $400–$500 million, while reiterating a full‑year module gross‑margin assumption of about 7% (ex‑IRA benefit) with a stronger back half expected; management is modeling Section 122 tariffs carrying through ~150 days (into July) and is not modeling tariff replacements beyond that. The company pointed to Q1 results that support the outlook: record net sales of $1.0 billion (up 24% YoY), module production of 4.3 GW (≈3.0 GW U.S., 1.3 GW international) with U.S. utilization ≈96%, adjusted EBITDA $520 million (50% margin) above its $400–$500M preview, net income $347 million (diluted EPS $3.22), cash/cash equivalents/restricted cash/marketable securities of $2.4 billion (net cash $2.0 billion, at the high end of the ~$1.5–$2.0B target), operating cash outflows of $215 million, and capex of $119 million. Backlog as of 3/31/2026 was 47.9 GW at an aggregate transaction price of $14.4 billion (exclusive of technology adjusters) with deliveries through 2030; bookings since the last call totaled ~1.9 GW (1.4 GW ex‑India at ~ $0.35/W), and Q1 bookings were ~1.7 GW (0.9 GW U.S. at ~$0.34/W and 0.8 GW India at ~$0.20/W). Management also noted underutilization cost guidance (previously $115–$155M), Q2 margin headwinds from lower Malaysia/Vietnam utilization, and that the South Carolina finishing facility is on track to start production in 2026.
Strong Volume Growth
Module production of 4.3 GW in Q1 (approximately 3.0 GW U.S., 1.3 GW international) with volumes sold growing 31% year-over-year.
Significant Margin Expansion
Gross margin of 47% expanded approximately 6 percentage points year-over-year; adjusted EBITDA of $520 million (above the Q1 preview range of $400M–$500M) and adjusted EBITDA margin of 50%.
Net Income and EPS Improvement
Net income of $347 million, up 65% year-over-year, and diluted EPS of $3.22.
Robust Balance Sheet and Cash Position
Ended the quarter with $2.4 billion in cash, cash equivalents, restricted cash, and marketable securities and a net cash position of $2.0 billion (at the high end of the targeted resilient cash range of ~$1.5B–$2.0B).
Operational Efficiency and Cost Savings
Sales freight cost fell to ~$0.017 per watt (roughly half of Q1 last year); warehouse costs reduced by $22 million sequentially, part of a plan to rationalize ~$100 million of warehouse costs by 2027.
Technology Launch — CURE
CURE launch complete in Perrysburg and Series 6 line ramping; CURE expected to deliver up to ~8% more lifetime specific energy yield than crystalline silicon TOPCon and supports potential realization of up to $600 million of additional revenue from technology adjusters in the backlog (majority anticipated in 2027–2028).
Backlog and Bookings
Contracted backlog of 47.9 GW at an aggregate transaction price of $14.4 billion (exclusive of technology adjusters) with gross bookings of ~1.9 GW since the last call and 1.7 GW recorded in Q1 (0.9 GW U.S. at ~$0.34/W and 0.8 GW India).
High U.S. Utilization and Domestic Manufacturing Progress
U.S. facilities operated at ~96% utilization in Q1; South Carolina finishing facility on track for production start in 2026 with equipment installation begun this quarter, expected to improve freight, tariff, and domestic content outcomes and benefit from Section 45X tax credits.
Operating Cash Flow Improvement
Operating cash outflows of $215 million in Q1, a meaningful improvement from outflows of $608 million in Q1 2025; capital expenditures of $119 million focused on South Carolina finishing facility.
Operator
Good afternoon, and welcome to First Solar, Inc.'s first quarter 2026 earnings conference call. This call is being webcast live on the Investors section of First Solar, Inc.'s website at investor.firstsolar.com. All participants are in listen-only mode, and please note that today's call is being recorded. I would now like to turn the conference over to First Solar, Inc. Investor Relations.
Byron Jeffers
Good afternoon. Thank you for joining us. We are joined today by Mark R. Widmar, our Chief Executive Officer, and Alexander R. Bradley, our Chief Financial Officer. Mark will provide an overview of our first quarter performance and an update on technology, manufacturing, and market conditions. Alexander will then cover our bookings, financials, and our 2026 outlook. After our prepared remarks, we will open the line for questions.
Today's discussion contains forward-looking statements. Actual results may differ materially due to risks and uncertainties as described in our earnings press release, other SEC filings, and earnings materials available at investor.firstsolar.com. We undertake no obligation to update these statements due to new information or future events. We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are in our earnings press release and presentation. This non-GAAP financial information is not intended to be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. With that, I will turn it over to Mark.
Thank you, and good afternoon. Beginning on slide...
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